Compute consolidated retained earnings at thedate of the acquisition

A)  $1,160.

B)  $1,170.

C)  $1,280.

D)  $1,290.

E)  $1,640.

Answer: C

Learning Objective: 02-06a

Learning Objective: 02-06b

Learning Objective: 02-07

Topic: Costs of combination

Topic: Acquisition―Calculate consolidated balances

Topic: Consolidation worksheet

Difficulty: 3 Hard 

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: $1,170 + ($2,880 – $2760 – $10) = $1,280